2024-08-05 14:00:38
(ANSA) – MILAN, 05 AUG – Last week, when stock markets were quite volatile, two topics “caught our attention: the quarterly results and the US labor market data”. This is what Richard Flax, chief investment officer of Moneyfarm, said. “The overall message – he added – has been mixed so far: the good news is that most companies continue to record better-than-expected earnings and overall profitability remains solid. But there is a less positive side: company earnings are not performing as well. The second focus, on the other hand, concerns the US economy and interest rates. There is a variety of macroeconomic data that suggests that the economy is slowing down. Analysts were indeed expecting the economy to slow down. But now the concern is that the slowdown is excessive. This combination of results is weighing on stock markets”. Vincent Mortier and Matteo Germano of Amundi predict a “widening of the stock market rally that is non-linear and probably in several steps. Some initial signs of this rotation have materialized recently”. “We believe – they add – that it is essential to return to fundamentals, examine valuations and remain disciplined. Markets have gone too far in some areas, but when a ‘trigger’ occurs, i.e. a decline in growth, liquidity crisis, disappointment in earnings, the swings could be sharp and rapid”. (ANSA).
2024-08-05 14:00:38